Asset Blockchainization on Bytom (II): Building Asset Ecology
In the first article of the series, we focus on the concept and key elements of the “Asset Blockchainization“, a framework for thinking about the “Asset Blockchainization” is logically set up. A letter from a reader hoping to talk about the vision and next steps of the Bytom blockchain. The author believes that the most macroscopic vision and the most concrete actions are really the key to a public chain project. As the second article in a series, it is necessary to answer the above questions before analyzing specific application scenarios.
The vision of Bytom is to create an abundant, shared asset ecology that makes the blockchain better for the real economy. The next step of the Bytom is to incubate the first batch of applications and drive the first batch of suitable assets on-chain.
Concept of Asset Ecology
What is Asset Ecology? It’s not an ecology to just provide a ledger that records real assets. Asset ecology means that, in such a platform, assets can evolve from lower to higher levels, and assets can be matched by assets, so that they can be combined into a new type. The rights and interests of the assets such as ownership, right of use and beneficial rights may be divided reasonably. The credit system of assets can be established, people can better benefit from owning assets.
We do a concrete explanation, the evolution of assets from low to advanced means that in this ecology, assets can jump from “solid” to “liquid” even to “gas” (see Note 1). The credit system means that the blockchain will record the credit of the participants, and the credit cannot be forged (see Note 2: Days Destroyed). Asset matching, segmentation and combination can be simply understood as matching a complementary asset, or splitting it into an asset easy to circulate.
Asset Ecology has three characteristics.
- Openness. Bytom is a public chain, all people or institutions, as long as they follow the rules, can develop applications on it and participate in the ecological construction of the public chain. The regulations will be formulated by the participants, and will be gradually formed in the process of constructing the ecology.
- Compliance. Participants must carry out all activities in accordance with the laws and regulations in force and, if the ecological rules conflict with the local laws and regulations, they must comply with the latter.
- Reciprocity. Bytom is a common platform; all participants will benefit from the prosperity of such a platform. The asset ecology will be a decentralized DAO organization that will benefit participants through TOKEN or other ways.
The Value of Asset Ecology
1. Achieving more efficient value transmission. Through the application of blockchain technology, Bitcoin can realize peer-to-peer digital monetary value transmission, this is basically a consensus in the industry. But Bitcoin, when used in real transactions, requires a large number of third-party intermediaries (like Alipay). Like the “Dark Net” deal, most of them have intermediate accounts, a buyer transfers bitcoin into an intermediate account, and these bitcoins would be transferred to the seller only after the intermediate confirms the seller’s shipment and buy’s receipt. So that, the bitcoin can’t solve the problem of peer-to-peer direct transmission in real transactions. What the Bytom currently doing is putting the real assets on the chain, enabling the peer-to-peer value transmission of onchain asset transaction.
As Figure 2-1 shows, a deal can manipulate multiple types of assets in one time in Bytom, and realize the effect of “0 hour” contract, in other words, the transfer of capital (Asset A) is accompanied by the transfer of right (Asset D), achieving the effect “immediate payment on delivery”, while, the relationship between “accountant’s loan” of assets will become more obvious, to achieve a similar function in a balance sheet where “borrowing and loan, they are equal”.
2. Better serve the real economy. With the help of blockchain technology, the first large-scale peer-to-peer transfer of assets(initially Bitcoin) was realized. However, the transfer of digital currency is only the first step in the ecology of blockchain assets, and more types of substantial assets migrating onchain can help create more value in the real world. Even more imaginatively, the wealth of functions that assets achieve in the verification and securitization can also be achieved through the peer-to-peer value network created by the blockchain, furthermore, it is possible to develop new features for the blockchain value network, even to create new asset varieties, which will be the dream of all investment bankers.
Through the construction of onchain asset and asset ecology, some assets that are not protected and traded in the “atomic world”, such as forest rights, intellectual property rights, non-performing assets, and other assets, can be transferred better, and some TOKEN will also be used more flexibly in its use to help the atomic assets of the atomic world obtain the convenience and efficiency of the blockchain, thus serving the real economy
Preliminary Work on Constructing Asset Ecology
1. Working as a team, motivating the community. As the setter of the Bytom, the operating team will take the lead in the early stage of the ecosystem building, especially in the initial period of Bytom’s launch, by helping the team or enterprise that wants to blockchainize its own assets in the first place. Later, the maintenance and value realization of this ecology will be spontaneously made by more
Now, as you see in Bytom’s “Weekly Report”, we are recruiting more operational talents, whether it be the professionals from former investment bank capital field or the professional BD of a large company such as Huawei. We are going to apply the experience accumulated in the asset verification and securitization phase to the building of Bytom’s value network and enable more applications supported by Bytom. We also call on more community members who are interested in assets blockchainization to actively participate in the construction of the ecology.
2. Setting up the scene, playing the role of “service provider”. In the trading system of Bitcoin, the identity of participants in the blockchain can basically be divided into “(Bitcoin)sender, (Bitcoin)receiver and (Bitcoin)miner”. In the Bytom system, in addition to the above three, service provider who plays the role of adding value is included. For example, if an organization needs a certain type of assets, it can design the requirements into the contract, and the assets matching in Bytom will automatically be incorporated into the business process of the service organization. This is similar to the concept of a service area on a highway.
At present, the service agency is basically a participant in the current phase of asset securitization, such as certain financial asset exchanges, stock exchanges or brokers, law firms, and accounting appraisal agencies. In the case of a financial asset exchange, a receivable asset can be received in a blockchain and converted into a usufruct asset through corresponding processing.
If more asset is put on the chains, more service providers will be attracted to provide service on Bytom, and more service providers on Bytom will attract more asset to be blockchainized on Bytom, so the role of service provider is important in the early stage and needs to be stimulated in the Bytom ecology.
The value of the public chain lies in its safety, ease of use and wide audience. The ultimate ideal of Bytom is to realize asset ecology, which is a gradual and grand course. At the same time, it is also a historic opportunity for those interested in asset blockchainization to join in and share the ecosystem of Bytom.
Note 1: Assets in “solid/ liquid/ gas” state were put forward by Xiao Feng and Chang Jia. Asset in the solid state is also called asset verification and is the process of turning an object into an asset right. An object, take housing property for an example, it is for the purpose of living, while later title deed appears which is to prove the right of the property and serve as transaction document. This is the stage of asset verification. Asset in the liquid state refers to the securitization of asset, it is the process of converting assets into securities. Asset in the gas state refers to the asset blockchainization (assets go onchain). Along with the development of blockchain technology, all sectors related to asset registration, transaction, settlement, etc, can be done onchain. Offchain trading shall follow the onchain requirements. Decentralization without platforms is realized in this stage, so that asset could easily flow like air and enter into the most convenient stage, a bit like a gas phase.
Note 2: Days Destroyed. Days Destroyed is calculated by multiplying its estimated transaction value by the number of days since the coins within the transaction were last spent. If someone has 10 BTC that they received 100 days ago then 1000 bitcoin days have been destroyed.
Translated from the second article over asset blockchainization on Bytom “比原链资产上链研究二：资产生态的打造” by Ma Qianli, vice president of 8btc News, responsible for the scenario realization of asset migrating onto Bytom Blockchain. Having competitive capability in IPO, M&A and asset securitization with many successful cases, Qianli was the director of investment banking arm in Codi Capital, and securities affairs representative of vöhringer after graduating from Shanghai University of Finance and Economics.